NSBA President Weighs in on Government ShutdownOctober 1, 2013
Washington, D.C. – The National Small Business Association (NSBA) is joining millions of Americans in expressing disappointment over the government shutdown that began this morning, Oct. 1, 2013. Coming on the heels of NSBA’s 2013 Mid-Year Economic Report, which shows an improved overall economic outlook for America’s small-business owners, this failure to govern could seriously hamper economic growth and optimism. Below, please see a statement from NSBA President and CEO Todd McCracken.
“This kind of fiscal irresponsibility cannot simply be accepted as the new normal. This failure will hurt many small businesses relying on any number of critical government programs—ranging from much-needed capital access programs under the U.S. Small Business Administration (SBA) to IRS taxpayer compliance assistance programs.
“Small businesses looking to the SBA for a loan to take advantage of a current business opportunity are left in an impossible position. Do they wait a day, a week, a month for the government to re-open and risk losing the opportunity? Or do they cut their losses and move on? Real jobs and real economic growth hang in the balance. Despite the economic gains we’ve seen in the last year, today, just two-thirds of small businesses (65 percent) report they are able to obtain adequate financing, down from 73 percent six months ago, making SBA lending all the more important.
“Exacerbating already complex IRS and tax rules, this shutdown will bring to a halt most IRS compliance assistance despite the fact that they have no plans to provide extensions to any upcoming deadlines. Further complications when it comes to taxes is the exact opposite of what small businesses need now.
“For those small firms who do business with the federal government, they are facing major project delays and widespread implications for their employees, not to mention the halt of any new business with the government.
“Economic uncertainty is still the number one challenge small businesses face and this latest debacle has firmly cemented Congress’ role as not merely failing to improve the situation—they are causing the problem. Furthermore, the number one issue small business wants our elected officials to address isn’t even a policy imperative, it’s for them to end the partisan gridlock and work together. Today, our lawmakers have gravely disappointed America’s small businesses.”
Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.